The First Egyptian Chinese Plant to Manufacture Oil Rigs in Suez

Eng. Sameh Fahmi, Minister of Petroleum announced the beginning of implementing the first plant for manufacturing onshore oil rigs in Egypt and the Middle East with a joint Egyptian – Chinese investments of about $30 million in Suez at the development industrial zone north – west Gulf of Suez.

This was during the visit of the Minister of Petroleum, General Seif Eldin Galal, the Governor of Suez, the Chinese Ambassador to Cairo as they gave the go ahead sign of the plant's constructions. The Minister, however, pointed out that the establishment of the plant is regarded as one of the fruits of President Mubarak's last visit to China which has given a momentum to accelerate the support of the Chinese – Egyptian joint cooperation.

The Minister added that the oil rigs plant will pave the way for the Egyptian shareholders of the project; Petrojet, Enppi, Tharwa Petroleum Companies to benefit from the distinguished expertise as well as the great technological potentials of the Chinese Corporation, HH.

The Minister added that the new Plant will contribute to providing the needs of the Petroleum Sector's companies and suffice the shortage in onshore rigs that experience a growing demand in light of intensifying oil and gas exploration operations. The plant will also contribute to availing more than 500 direct and indirect job opportunities for Suez citizens. Moreover, it is planned to expand in manufacturing drilling rigs, wells maintenance, rigs overhaul in the Arab region and North Africa.

Eng. Mohamed Hamed El Gohari, Chairman of the Egyptian Chinese Petroleum Co. for manufacturing drilling rigs, clarified that the plant location was chosen and allocated in the industrial development area in Suez at an area of about 84 thousand m² for its proximity to the ports of El Ein El Sokhna, Adabeya and main highways. He added that the first fruit of the plant is 3 drilling rigs at the end of this year and production capacity will be expanded gradually according to the working program for up to 7 rigs in 2008; and then 10 rigs in 2009, 15 rigs in 2010, to reach 20 in 2011, which is the designed production capacity of the plant.